U.S. Enforcement Against Cartels: Risks for Agro
Litigation attorneys Wifredo Ferrer and Barbara Martinez and corporate attorneys Alejandro Sánchez Mújica and Oscar Alejandro Quiroz-Chávez co-authored a Latinvex article analyzing how recent U.S. enforcement actions against Mexican cartels are creating new risks for the agro‑industrial sector. The article explains that expanded measures by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), alongside parallel developments in Mexico, reflect a broader and more coordinated strategy that extends beyond traditional targets such as narcotics trafficking and financial networks. In particular, the authors highlight increased scrutiny of agricultural and agro‑industrial operations in regions including Jalisco and Michoacán, where cartels may influence land use, logistics, supply chains and commercial activity through extortion or coercion. The piece also details the implications of the designation of major Mexican cartels as Foreign Terrorist Organizations and Specially Designated Global Terrorists, emphasizing the heightened legal exposure for companies under U.S. "material support" and constructive knowledge standards. The attorneys conclude by outlining practical steps companies can take to strengthen compliance, third‑party due diligence and risk management as enforcement efforts continue to ramp up.
The article is based on a Holland & Knight alert published by the authors.